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Arla Foods UK to enter into a co-packing agreement with Andros

Press Release   •   Sep 09, 2008 08:37 BST

Arla Foods UK has today (Tuesday September 9) confirmed that, subject to the sale of Milk Link's Staplemead creamery to Andros, it will enter into a co-packing agreement with the new owners to pack a range of products previously produced by Staplemead Dairy Products, the joint venture company owned by Arla Foods UK and Milk Link.

Under the co-packing agreement, Andros, a French dairy company, will take over production of a range of creams, custards and flavoured milks for Arla Foods, when the existing joint venture ends by mutual agreement in early autumn.

Arla Foods CEO, Peter Lauritzen, said of the proposed agreement: "We understand Milk Link's decision to sell Staplemead and look forward to a positive working relationship with Andros which already supplies key UK retailers and has expertise in the production of fresh dairy products. We understand it has major investment plans for the site."

The co-packing agreement at Staplemead complements Arla Foods' Northallerton and Oakthorpe operations which produce fresh and speciality creams for the UK's major retailers.

Arla Foods UK plc is home to some of the UK’s leading dairy brands including Cravendale, Lurpak and Anchor. Processing approximately two billion litres of milk a year Arla continues to be one of the UK’s leading dairy companies and a supplier of fresh liquid milk and cream to the top seven retailers.

Over 2,500 daily deliveries are made directly to stores nationwide and Arla brands can be found across the dairy category. As well as the leader of the butter, spreads and margarine sector, and a major supplier of other added value products including flavoured milk and cheese, Arla continues to build working relationships with Arla Foods Milk Partnership, a unique group of dairy farmers, which supplies around 90 per cent of Arla's total milk requirements.

Behind this leading business is a team of circa 2,800 people across the UK located at our dairies, distribution centres and head office.